Prime Minister Justin Trudeau has announced a huge rent cut for small businesses whose operations have been seriously affected by the COVID-19 crisis.
Speaking in Ottawa this morning, he said the federal government is moving ahead with its Canada Emergency Commercial Rent Assistance Program.
Trudeau said he had reached an agreement with all provinces and territories, which have jurisdiction over rent.
Under the plan, small- and medium-sized businesses that qualify will receive a 75% rent reduction for April, May and June.
It will apply to firms whose rent is $50,000 a month or less who have temporarily ceased operations or have experienced at least a 70% drop in pre-COVID-19 revenues.
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Half of the reduction will be paid for by governments, with the rest paid for by property owners.
Charities and non-profits will also be eligible, the prime minister added.
The program will provide forgivable loans to qualifying commercial property owners to cover 50% of three monthly rent payments payable by eligible small business tenants experiencing financial hardship.
The loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants’ rent by at least 75% for the three corresponding months under a rent forgiveness agreement, which will include a pledge not to evict the tenant while the agreement is in place.
More announcements are coming soon for larger businesses, Trudeau said.
The prime minister also said reopening the economy will have to happen “one step at a time.”
It will require a lot of coordination on a national level, he said, and the government will be working with provinces on the next steps.
“It won’t happen overnight,” he said.
